18/20 score

1. Fiscal adequacy means the tax must be able to raise enough funds to pay for the
cost of government. FALSE
2. Congress can pass a law to tax the citizens of the Philippines for a particular
emergency purpose. TRUE
3. Which is not a secondary purpose of tax? Making the rich poorer and the poor
richer.
4. Which is not a limitation to the power of taxation? The tax cannot be imposed
on a class of items as this would be discriminatory.
5. Which of the following cannot be done by a tax law? Violate the basic
principles of a sound tax system
6. The President of the Philippine cannot refuse to implement a tax law passed by
Congress. FALSE
7. What cannot limit the power of taxation? The Bureau of Internal Revenue.
8. Which of the following constitutes tax evasion? Documenting a transaction to
be non-taxable when in fact it is taxable.
9. What cannot describe the manner by which a tax is imposed? FIXED
10. Avoidance and Evasion are different in that the former is allowable but the latter
is criminal. TRUE
11. The power to tax is enforced by the Bureau of Internal Revenue. TRUE
12. Which of the following makes a tax law invalid? The tax law is created by the
President of the Philippines.
13. Which does not apply in the case of Tax Exemptions? The exemption must be
granted when it would bring honor to the Philippines
14. The government can tax the municipality of Boracay for the income it generates
to pay for the maintenance of the environment of Boracay. FALSE
15. Which of the following can be taxed by the Philippine government? Salaries of
Filipino employees in the US Embassy. NOT SURE
16. Which of the following government office cannot be a source of tax rules?
CONGRESS
17. Which is not a basic principle of a sound tax system? The tax must not be
burdensome
18. Avoidance and Evasion are the same thing in that it results in loss of revenue of
the government. TRUE
19. Taxes are necessary burdens on the subjects of a state to finance the costs of
governing the state. TRUE
20. In the implementation of a tax law, which of the following is incorrect? If the
government failed to implement a tax law with a taxpayer, it cannot
implement it with other taxpayers.